Sequoia Capital is looking to invest about Rs 100 crore in Bengaluru-based outdoor gear manufacturer Wildcraft, people aware of the development said, in what will be the venture capital firm’s second round of funding in the company. In 2013, Sequoia had pumped in close to Rs 70 crore in Wildcraft — which mainly makes rucksacks, bag packs, jackets and raincoats — valuing it at about Rs 350 crore.
“The second round of funding is done at a strategic time. Wildcraft is looking to hit the primary market with an IPO (Initial Public Offering) in 2017,” one of the persons cited earlier said, adding that the funding deal is expected to be concluded in the next quarter.
Email queries sent to Wildcraft, Sequoia Capital’s spokesperson and Shailendra Singh, Managing Director of Sequoia India, on the matter had not elicited any response till the time of going to press on June 7.
A person close to Wildcraft said, “It has been decided that an IPO would be rolled out, but it is too early right now. Plans of how much could be raised and how much equity needs to be dissolved would be decided at a later stage.”
Sequoia had picked about 20% stake in Wildcraft in the first round of funding. The venture capital firm is expected to exit Wildcraft once the IPO hits the market.
The majority stake, however, will continue to be held by Co-Founders Gaurav Dublish, Dinesh KS and Siddharth Sood, said one of the persons quoted earlier.
Wildcraft is one of the few non-tech startups in the country which have seen a surge in revenue and valuation in the last few years.
The company, which reportedly touched Rs 250 crore in sales in 2015, has been growing at more than 50% year-on-year in the last five years. A person close to the company said its top line touched Rs 1 crore in 2007 and has seen huge growth since then.
Wildcraft has three manufacturing plants in India — two in Karnataka and one in Himachal Pradesh. It has been on an expansion spree in metros and tier-2 and tier-3 cities. Its stores have grown in number by around four times in the last four to five years.
Source: The Economic Times
